Bankruptcy Basics

What is bankruptcy?

• Bankruptcy is a method to avoid paying debts

• Bankruptcy is a process for individuals to increase their wealth

• Bankruptcy is a legal process for individuals or businesses unable to repay their debts, providing relief from some or all of their debts.

• Bankruptcy is a financial strategy to double one's assets

What are the different types of bankruptcy?

• Chapter 15

• Chapter 7, Chapter 11, Chapter 13

• Chapter 9

• Chapter 17

What is the role of a bankruptcy trustee?

• Negotiating with creditors

• Providing legal advice to debtors

• Filing bankruptcy paperwork

• Overseeing the bankruptcy process, managing debtor's assets, and distributing assets to creditors.

What is the means test in bankruptcy?

• A test to determine if a debtor can file for bankruptcy

• Calculation used to determine if a debtor's income qualifies for Chapter 7 bankruptcy.

• A credit check for bankruptcy eligibility

• A medical examination required for bankruptcy approval

What is the automatic stay in bankruptcy?

• A document that outlines the debtor's assets

• A court order to seize the debtor's property

• A legal provision that speeds up the bankruptcy process

• A legal provision that halts most actions by creditors to collect debts from a debtor who has declared bankruptcy.

What are exempt assets in bankruptcy?

• Assets that are protected from being liquidated to pay off debts.

• Assets that are acquired after filing for bankruptcy

• Assets that are not disclosed during bankruptcy proceedings

• Assets that are easily transferable

What is Chapter 7 bankruptcy?

• Chapter 7 bankruptcy is a legal process that allows individuals and businesses to restructure their debts without liquidating assets.

• Chapter 7 bankruptcy is a legal process that allows individuals and businesses to eliminate most of their debts by liquidating assets.

• Chapter 7 bankruptcy is a legal process that allows individuals and businesses to borrow more money to pay off existing debts.

• Chapter 7 bankruptcy is a legal process that allows individuals and businesses to transfer their debts to another party.

What is Chapter 13 bankruptcy?

• Chapter 13 bankruptcy is a process for individuals to avoid paying any debts

• Chapter 13 bankruptcy is a legal process that allows individuals with a regular income to develop a plan to repay all or part of their debts.

• Chapter 13 bankruptcy is a process for businesses to liquidate assets

• Chapter 13 bankruptcy is a process for individuals to discharge all debts

What is the difference between Chapter 7 and Chapter 13 bankruptcy?

• Chapter 7 involves a repayment plan, Chapter 13 involves selling assets.

• Chapter 7 involves restructuring debt, Chapter 13 involves discharging debt.

• Chapter 7 involves a repayment plan, Chapter 13 involves liquidating assets.

• Chapter 7 involves liquidating assets, Chapter 13 involves a repayment plan.

What are the consequences of filing for bankruptcy?

• Retainment of assets

• Easy access to loans

• The consequences of filing for bankruptcy include a lower credit score, difficulty securing loans, loss of assets, and potential damage to reputation.

• Increased credit score